On Friday, the Missouri Division of Finance closed WestBridge Bank, headquartered in Chesterfield, Missouri, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Midland States Bank, headquartered in Effingham, Missouri, to assume all of the deposits of the failed bank.
As of June 30, 2010, WestBridge Bank had approximately $91.5 million in total assets and $72.5 million in total deposits. Midland States Bank did not pay the FDIC a premium to assume the deposits of WestBridge Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Midland States Bank entered into a loss-share agreement on $72.6 million of WestBridge Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $18.7 million. WestBridge Bank is the 131st FDIC-insured institution to fail in the nation this year, and the fifth in Missouri. This is the second failed bank acquisition by Midland States Bank.